Louisiana House Bill HB306

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Provides relative to the bidding process in judicial sales

Impact

The proposed law will amend existing procedural code regarding public sales to include the possibility of sealed written bids. This change is expected to enhance the ability of creditors to participate in judicial sales without being physically present. It could potentially lead to a more competitive bidding environment, as it allows creditors to submit their maximum bids confidentially, which may enhance bidder confidence and result in better financial outcomes for the creditors involved.

Summary

House Bill 306 aims to modify the procedures surrounding public sales in the context of judicial sales by introducing the acceptance of written bids from seizing creditors. Currently, the process requires public auctions, and this bill seeks to streamline that by allowing bids to be submitted electronically or through traditional mail, thereby facilitating participation from creditors with an interest in the property being sold. By outlining specific conditions for submitting these bids, including the requirement for them to be validly submitted at least one hour before the scheduled auction, the bill intends to create a more orderly and efficient auction process.

Sentiment

General sentiment concerning HB 306 appears to be supportive among those who see the modernization of the bidding process as a necessary update to improve efficiency in judicial sales. Advocates argue that allowing electronic submission aligns the process with contemporary practices, making it more accessible for creditors. However, there could be concerns regarding transparency in the bidding process, especially with the confidentiality of maximum bids, leading to questions about fairness and accountability in auctions.

Contention

One notable point of contention could arise from the potential impacts on the auction process, particularly regarding the sheriff's responsibilities. If a submitted bid is not appropriately considered at the auction, the proposal allows the creditor to demand a reset of the sale at no further cost, which raises questions about liability and accountability. Critics might argue this could lead to irregularities or conflicts during the sale process, possibly disadvantaging certain parties in the judicial sale framework.